SEBI has asked AMCs to set up technology committee to review their cyber security and cyber resilience framework among other things. The committee should comprise experts in technology and have at least one independent expert with relevant experience in BFSI.
In a circular, SEBI said, “The role of technology related aspects has become even more critical in managing risks related to asset management business. In order to deal with various technology related issues, AMCs are advised to constitute a technology committee comprising experts proficient in technology.”
SEBI further said that forming such a committee is need of the hour, as rapid technological advancement in securities market is having a major impact on various functions of AMCs.
In another circular, SEBI has revised the system audit guidelines for mutual funds. System audit includes both front and back office processes such as fund accounting, calculation of NAV, financial accounting and so on.
SEBI has advised fund houses to implement these guidelines from the current financial year. Also, AMCs will have to conduct their audit annually through an independent Certified Information Systems Auditor (CISA)/Certified Information Security Manager (CISM) qualified or equivalent auditor.
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